Building Societies rip off

[flubber]

Take care dealing with a certain Building Society who Howard advertises - it has an "X" in the name.

I banked a cheque yesterday and expected to get some shopping this weekend but find that the crediting to your account takes 8 days - 7 clear banking days for cheques to be credited to your account. Any cheques you write are cleared within 3 days so "X" sits on your cheque deposits for an additional 5 days

Within the next fortnight I am banking a very large cheque from the proceeds of my house sale and need to immediately issue two cheques (deposit and removal fees) and of course my money will not be credited in time or my cheques will bounce. I have just visited them to ask about this and they were offhand and only reiterated "8 days"

Right now I am very unhappy how this building society can get away with over a week to clear a cheque and I am going to get very hungry until 24th when I can spend some money on food for myself and dogs.

Take caution in dealing with this Building Society - their charge now is �39 per letter and I understand �25 for any overdraft fee, so that's �64 in charges.

[stevie21]

You sure it's not a *bank* you're dealing with and do you have a normal current account or a Basic account?

If you use cheques a lot then consider getting an account with one of the clearing banks such as RBS.

[flubber]

Lol Stevie - it's a Bank but is still thought of as a Building Society. I have a current account, a cheque card for PIN use only (it is not one that I can use with a cheque, and a chequebook) point being that 8 days is far to long to credit your account. I would really hope before long someone looks into the banking system with building society/wannabee banks.

[chazza]

Can you get an overdraft on your account? You could backdate the cheques which you have to write, chances are their own bank/bs will take about 5 days to clear the cheques so depending on when they bank them, you might be ok

[Oneeyedvic]

Or - you can get your solicitor to TT (Telegraphic Transfer) the money which is same day - no waiting around for cheques. It does cost around �25 but better than overdraft fees!

[ugly_bob]

I'm sure there was supposed to be a government enquiry into the delays banks apply. Seeing as it is all done electronically now, there is no reason for it anymore.

[flubber]

Bob I am sure you are right in what you say. To be honest I still think "X" is taking longer than the main High Street Banks for depositing cheque funds into your account. If they can take your cheque payment within three days then they surely can give you your money within the same time frame.

[STAH]

Halifax (HBOS) is a bank. However, they are not a clearing bank and they have to rely on other financial institutions to clear their cheques. (Abbey National uses HSBC for example).

This would explain why they take "that little bit extra" (forgive the pun) to clear your cheque.

Halifax boast a better rate of interest than the other big four. However, if you do wish to pay a cheque into your account, or pay a bill over their counter by cheque you come a cropper. Call me a cynic, but their is no such thing as a free lunch!

I would suggest moving to a clearing bank (as stevie 21 quite rightly suggests). HSBC, RBS group (including NatWest), Lloyds and Barclays to name a few. Interestingly enough, Halifax merged with the Bank of Scotland (hence HBOS). I always thought that they (Bank of Scotland) were a clearing bank. Perhaps they could use their system? After all, they are the same outfit! A suggestion for the chief exec of Halifax as and when he removes his finger from his behind perhaps?

[flubber]

Now we are talking names I will dtich Halifax asap. What really has rubbed salt into the wound is that on 31st I shall bank �100K and need to immediately write a cheque for rent deposit and pay a removal man. Halifax know the money is coming in from the solicitor but they will still not allow me to touch it for 8 days - so the two cheques will bounce. It also means that I cannot move directly into a rented home so for 3-4 days the furniture will have to be stored and I sleep in the car probably.

Now I did a quick sortie to Nat West and spoke about this situation and was told that providing the �100K is banked I can write a cheque immediately for rent and removals. That, to my mind is good business practise.

As an old customer I would have thought that Halifax could have helped me but no - so as Nat West won't take 8 days to release my funds they can have all my money and Halifax can go away.

[SalisburyMik]

seems like despite officially being a bank your "bank" still have legacy building society systems - most major high street clearers (i.e. "the Big 4") clear cheques in 3 days - not that quick but 8 days is far too slow - on what day do you start to get interest on your money? vote with your cash and move accounts!

[JF]

STAH is right. HBOS, care of Bank of Scotland IS a clearing bank, and Halifax has access to clearing bank services, so there's no excuse. It's just a way for them to cream 'eXtra' interest for themselves. Ditch the wannabe bank for a proper clearing bank.
Also note that Lloyds TSB has just introduced immediate clearance on cheques (albeit to a maximum of �1,000) which is similar to an earlier move made by Barclays some time ago, though Lloyds pays better interest on credit balances. This is great because it helps to immediately clear any overdraft, saving interest payments you would otherwise cough up. Generally, most clearing banks will allow you to write a cheque the same day you credit a cheque as each take 3 days to be debited/credited from an account.
But 8 days from what is now the UK's 4th largest bank (in market value) is taking the proverbial 'you-know-what'. Switch to a REAL bank and put your mind at rest.

[flubber]

Oh yes, 8 days is far too long. I really wish I could bring this to someone's attention for investigation because there's nothing - nothing - written anywhere to state 8 days clearance on banked cheques.

I'll open an account with Nat West tomorrow. I am assured that a cheque book and card will be ordered tomorrow and kept at the Bank until I deposit my funds and the chequebook will be available for me at that time. Also that I can write the two immediate cheques that I will need to do.

That is banking efficiency and a good business policy.but as to Halifax......I am still seething and in for a hungry few days until 24th